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You Missed the Best Day to Buy

But you haven't missed your chance.

Every day for 20 years this lady prayed to win the lottery. Every single day. Finally, in despair, she said, "God, I've been a true and faithful servant, and have lived an exemplary life. Why won't you grant me this one thing?"

Buy the ticketSimilarly, in order to take advantage of the greatest long-term wealth-building machine available to us individual investors, you have to be in the market. And if the current craziness is keeping you away because you fear a huge drop, you're ignoring the advice of some of history's top investors.

In the latest edition of his book Stocks for the Long Run, Jeremy Siegel charted returns for a hypothetical unlucky investor who happened to invest at the absolute top of six major 20th-century market peaks. After 30 years, this investor actually accumulated four times more wealth in stocks than he would have in bonds, and five times more than in T-bills. For a 20-year period, he doubled the bonds' return.

There's more where that came fromConsider John Templeton, who sadly passed away last year. The founder of Templeton Growth Fund and widely regarded as one of the best investors of his generation, he had some simple advice about getting into the market: "The best time to invest is when you have money. This is because history suggests it is not timing which matters, it is time."

Our own David and Tom Gardner, who've beaten the market by a tremendous amount in Motley Fool Stock Advisor, also eschew any attempts at timing the market. "The best time to invest was yesterday," says Tom. "The next best time is today."

So even though the tongue-in-cheek title of this article implies you've missed your best chance, you can see that you really haven't. If you've got money you won't need for five years or more, just get in the game as soon as you can.

Still need convincing? I looked back 15 years, specifically searching for companies that had been up 50% or more in one year. Surely many investors back then were worried that stocks were too rich and ready for a great fall. Well, a gnarly bear market did start up a few years later, and yes, these stocks fell. And yet despite their tremendous prior one-year gains, and despite two great bear markets, their returns were magnificent for those who held for the long term.

Company

Feb. 1993 to Feb. 1994

Feb. 1994 to Feb. 2009

Cisco(NASDAQ:CSCO)

69%

638%

PotashCorp(NYSE:POT)

37%

1,809%

Nucor(NYSE:NUE)

32%

162%

EMC(NYSE:EMC)

237%

350%

AutoZone(NYSE:AZO)

49%

419%

Burlington Northern(NYSE:BNI)

32%

203%

Qualcomm(NASDAQ:QCOM)

35%

2,497%

S&P 500

5%

66%

There are no guaranteesWhile some of the companies above have not returned to their all-time highs of 2000, history shows that if you can find superior businesses with good management, hold for the long haul, and add new money regularly, you will rarely be disappointed.

That's the advice David and Tom give to their Stock Advisor members, and they help them with not only new recommendations each month but also the top five stocks to buy right now. They've been at it a long time, through bear and bull, and their recommendations are beating the market by an average of 31 percentage points each.

Right now a special no-obligation free trial will give you access to all these stocks, and more. Here's more information.

Rex Mooreis an analyst for Stock Advisor and thinks now is a good time to buy stocks. He owns a lot of stocks, but none mentioned in this article. AutoZone is an Inside Value recommendation. This information is brought to you by the Fool'sdisclosure policy.

Author

Rex Moore spent his formative years in Texas, and fought beside Davy Crockett at the Alamo. He currently travels the globe for TMF, bringing back video reports on conferences and companies that matter for investors.